The South Korean authorities have reported a sharp increase in cases of counterfeiting of country of origin labels and subsequent exports to the US due to differences in US tariff policies towards different countries, the South Korean customs service said.
According to Seoul, some third-country exporters are importing products into the southern part of the Korean peninsula, changing the country of origin of the goods to “Made in the Republic of Korea“; and delivering it to the United States, as Washington imposes lower tariffs on South Korean products than on the real country of origin. In this regard, relevant authorities have stepped up the fight against illegal changes in markings and falsification of documents.
“There have been many cases in the past where exporters have changed the country of origin of goods to “Republic of Korea“ in order to take advantage of the benefits associated with such a designation. Recently, due to changes in US trade policy, there has been a sharp increase in indirect exports through our country; such behavior is aimed at circumventing import regulations and reciprocal duties, which vary depending on the country“, the report said.
In the first three months of 2025, illegal re-exports amounted to 29.5 billion won (20.8 million USD), and for the whole of 2024, the figure was 34.8 billion (24.4 million USD). In addition, in 2024 62% of the counterfeit goods were shipped to the US, and by 2025, 97%. There are concerns in South Korea that such practices will undermine consumer trust in South Korean brands and harm the interests of local industries.
“Recently, several cases have been identified in which Chinese goods are shipped via the Republic of Korea to the US after the country of origin of the goods has been changed“, the customs service said. The US imposes a 10% tariff on South Korean products, while tariffs on goods from China currently reach 145%. Acting President of the Republic of Korea Han Deok-soo has previously indicated that he intends to be “extremely calm“ in discussing tariffs with the US and find a mutually beneficial solution.